Faced with a Sebi order to improve its governance structure, MCX Stock Exchange has set up a high-level committee to oversee its key functions, including top-level appointments and significant financial matters.

A similar committee has been set up by the MCX-SX Clearing Corporation as well to ensure compliance with a Sebi order issued on September 12 in the wake of a Rs 5,600-crore payment crisis at group entity National Spot Exchange (NSEL).

The committees would advise boards of the two entities on major policy matters and ensure all regulatory compliance.

MCX-SX has also called an Extra Ordinary General Meeting (EGM) of its shareholders on October 9, wherein their approval would be sought on "the status on conflict of interest and compliance" with the relevant Sebi regulations by directors and the key management personnel including managing director, pursuant to the latest Sebi order.

The commiteee would brief the MCX-SX shareholders on this matter at the meeting, the exchange said in its EGM notice.

While renewing MCX-SX's recognition as a stock exchange for another year, commencing from September 16, Sebi has asked MCX-SX to constitute a committee of two independent directors and three institutional investor nominees to oversee key business decisions, policy matters and appointments of top management personnel.

Similar directions were issued to its subsidiary, MCX-SX Clearing Corporation Limited (MCX-SXCCL), as well.

"The boards of MCX-SX and MCX-SXCCL have constituted the committees as required in terms of the Sebi renewal letter dated September 12, 2013. We have kept Sebi informed of the same," a spokesperson for the bourse told PTI in reply to queries in this regard.

However, the exchange refused to share the names of the committee members despite repeated attempts.

MCX-SX Ltd is promoted by Financial Technologies Group which also runs spot commodity exchange NSEL, which has been engulfed in a crisis when it stopped trading on all contracts on July 31 following government directives.

MCX-SX began operations as a full-fledged stock exchange in February this year, but trading volumes of the exchange has been quite low as compared to rivals BSE and NSE. The exchange has got the licence after a months-long battle with Sebi within and outside the court.

While Sebi decided to renew its license despite continuing troubles at NSEL, which has defaulted on at least five payments so far, the regulator asked MCX-SX to work towards strengthening its governance practices.